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Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks

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  • Mirko Draca
  • Stephen Machin
  • Robert Witt

Abstract

In this paper we study the causal impact of police on crime, looking at what happened to crime and police before and after the terror attacks that hit central London in July 2005. The attacks resulted in a large redeployment of police officers to central London as compared to outer London. During this time, crime fell significantly in central relative to outer London. The instrumental variable approach we use uncovers an elasticity of crime with respect to police of approximately -0.3 to -0.4, so that a 10 percent increase in police activity reduces crime by around 3 to 4 percent. JEL: K42

Suggested Citation

  • Mirko Draca & Stephen Machin & Robert Witt, 2011. "Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks," American Economic Review, American Economic Association, vol. 101(5), pages 2157-2181, August.
  • Handle: RePEc:aea:aecrev:v:101:y:2011:i:5:p:2157-81
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    More about this item

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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    1. Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks (AER 2011) in ReplicationWiki

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